Business Strategy
Ongoing coverage on Business Strategy.
Latest coverage
Capcom producer says Resident Evil remakes are providing financial support to develop new games and IP
Capcom producer Masachika Kawata stated that Resident Evil remakes are crucial for funding new game development and original intellectual property. He explained that this strategy allows the team to release a Resident Evil title annually while also honing their skills and challenging themselves with new projects like Pragmata.
Google’s AI Spending Guidance Just Slipped — And That’s the Real Story
Google has revised its capital expenditure guidance upwards, now projecting spending between $195 billion and $205 billion, a significant increase from the previous $190 billion ceiling. This revision, coupled with competitive pressures from Chinese AI firms and potential overbuilding of data centers across the industry, raises concerns about profitability and forecasting accuracy for Google and the broader AI sector.
Wizards of the Coast President John Hight is Leaving in September
John Hight, President of Wizards of the Coast, will be leaving his role on September 1st after two years with the company. He will transition to an advisory role for Hasbro for one year. During his tenure, Hight oversaw development for tabletop games like Dungeons & Dragons and Magic: The Gathering, as well as digital projects including Exodus and Warlock: Dungeons & Dragons.
Koei Tecmo Wants to Release 6 Console and PC Games, 19 Mid-Range Games Before March 2027
Koei Tecmo plans to release six major console and PC titles, 19 mid-range games, and two original online/mobile titles before March 2027. This strategy aims to diversify its portfolio beyond big-budget releases. Upcoming major titles include Attack on Titan 3 and Wo Long 2: Wings of Ember, with Attack on Titan 3 confirmed for PC, PlayStation 5, Xbox Series X/S, and Nintendo Switch 2 this winter.
Xbox Series X/S Consoles Are Still Sold at a Loss Even After Price Hikes – Rumor
Despite price increases, Microsoft's Xbox Series X/S consoles are reportedly still sold at a loss of around $150 each, a situation expected to continue even after future price hikes. This financial strain may impact the pricing strategy for the upcoming 'Project Helix' console, which is rumored to be an open platform with a high price point due to reliance on hardware revenue. Reports also indicate that Xbox Ally users primarily subscribe to Game Pass rather than purchasing games directly, highlighting the dominance of platforms like Steam in the handheld market.
Wizards of the Coast president is stepping down after just 2 years on the job
John Hight, president of Wizards of the Coast and former general manager at Blizzard Entertainment, is stepping down after two years. He will transition from his role on September 1st to an advisory position with Hasbro, the parent company. This departure occurs amidst Hasbro's reported $56 million impairment from cancelled video game projects and a stated goal to reduce digital spend.
Subscriptions, Clouds, and Streams
This article analyzes the impact of Xbox Game Pass, discussing how subscription services, cloud gaming, and streaming were intended to revitalize Xbox. It argues that these strategies may be negatively affecting the company's overall business.
Resident Evil Remakes Help Fund New Games Like Pragmata, Says Producer
Capcom producer Masachika Kawata explained that Resident Evil remakes are crucial for funding new titles like Pragmata and mainline entries, while also helping to maintain an annual release cadence. This strategy allows the company to revisit older games, introduce them to new audiences, and generate financial resources for both sequels and original intellectual property development.
Resident Evil remakes allow Capcom to release yearly games in the series and invest money back into new games like…
Capcom producer Masachika Kawata explained that Resident Evil remakes are crucial for the company's strategy, allowing them to release games in the series annually and reinvest profits into new titles like Pragmata. These remakes, such as the upcoming Resident Evil: Code Veronica, are considered as important as mainline entries and help hone the development team's skills.
After half a decade of job losses, there is no “business as usual” | Opinion
The article analyzes the persistent game industry layoffs over the past five years, highlighting the destruction of talent and the failure of current business models. It suggests that the industry's reliance on instability and contractor exploitation is unsustainable for both employees and studios, proposing a shift towards more stable, indie-inspired development and prototyping models.
Resident Evil 4 Has Sold More Than Twice As Much As Any Other Current-Gen Remake
The Resident Evil 4 remake has achieved 16.8 million lifetime sales, significantly outselling other current-generation remakes like Ark: Survival Ascended and The Last of Us Part I. Data from Alinea Analytics indicates that remakes are a vital and less risky revenue stream for publishers, providing a proven design and fanbase compared to new intellectual property.
How Jackbox Games navigated the post-pandemic sales slump
Jackbox Games CEO Mike Bilder discusses how the company navigated the post-pandemic sales slump by moderating headcount and sticking to its strengths, unlike other companies that experienced mass layoffs. Despite a decline in sales following a 2020 boom, Jackbox Games has maintained a solid position and is launching a new publishing division.
Mario Dad Miyamoto Says Companies Prioritizing Short-Term Profit Gains “Feels Like A Massive Failure”
Nintendo's Shigeru Miyamoto expressed disappointment with companies prioritizing short-term profits over long-term playability, stating it feels like a massive failure. He believes Nintendo's success stems from focusing on creating fun, unique gameplay experiences rather than chasing trends or maximizing immediate financial returns. Miyamoto emphasized that prioritizing gameplay leads to products with broader and more lasting appeal.
Miyamoto says Nintendo receives global support because it thinks of fun and its fans first instead of what’s trending, not interested in terms like ‘recouping costs’
Shigeru Miyamoto states that Nintendo's enduring global support stems from prioritizing fun and fans over trends or short-term financial goals like recouping costs. He emphasizes creating unique, appealing products by focusing on the core fun of gameplay, citing examples like Splatoon and Pokémon. Miyamoto also touched upon the development pipeline influenced by the Super Mario Galaxy Movie and Nintendo's approach to creating new characters.
Hasbro records $56m write-down and cancels "several games" scheduled for 2028 and beyond
Hasbro has recorded a $56 million write-down and canceled several video games planned for release in 2028 and beyond. CEO Chris Cocks stated the company is refocusing its digital investments on franchises with the clearest upside and where Hasbro has the strongest position, prioritizing trading card games and role-playing games, and seeking suitable partners.
Hasbro records $56M write down after scrapping 'several' video games
Hasbro reported a $56 million non-cash write down after cancelling several video games planned for 2028 and beyond. CEO Chris Cocks stated the decision reflects a new digital strategy focusing on key franchises like Dungeons & Dragons and Magic: The Gathering, with an emphasis on cost discipline and owned platforms. The company expects its total digital spend to decrease annually by at least 25 percent by 2028.
Baldur's Gate series overlords Hasbro take $56 million hit after cancelling several games due out in "2028 and beyond", with Exodus and Warlock unaffected
Hasbro has announced a $56 million impairment due to the cancellation of several games planned for release in 2028 and beyond. While specific titles were not named, the company stated its confidence in its digital games portfolio, with releases like Exodus and Warlock: Dungeons & Dragons still on track for 2027. Hasbro is refocusing its strategy on fewer, high-potential projects and partnerships.
Halo’s PlayStation Debut Could Also Be Its Farewell
Microsoft's Xbox division is undergoing a significant strategic shift, moving away from broad multi-platform releases like Halo: Campaign Evolved towards a renewed focus on console exclusivity. This change, spearheaded by CEO Asha Sharma, involves scaling back the Xbox division and potentially canceling unannounced titles, though games already expected on other platforms will proceed. The article analyzes the implications of this shift for future Halo titles and the broader gaming landscape, considering factors like sales, player acquisition, and potential exclusive benefits for Xbox players.
Xbox CANNOT Entertain 1 Billion People Daily
Xbox CEO Asha Sharma has set an ambitious goal to entertain 1 billion people daily. The article analyzes the feasibility of this target, suggesting it is a near-impossible objective given the current global population and market reach.
Hasbro takes $56 million hit over multiple game cancellations, but it's still talking about how Baldur's Gate…
Hasbro reported a $56 million non-cash impairment due to the cancellation of several video games slated for release in 2028 and beyond. The company is refocusing its digital investment on key franchises like Magic: The Gathering and Dungeons & Dragons, aiming to reduce overall digital spend by 25% annually by 2028.
